Skip to main content

Which SG Bank to Long?



US-China spat has caused fear in the markets, bringing down global equity markets. Our 3 banks suffered the same faith with institutions taking a Risk Off stance.

But 1 bank stood out recently by breaking out of its down trend stride (line) and trades in sideways range as compared to the other 2 banks which are still within the downtrend channel.

Yes! its OCBC. Reason why? We may not know.

As Richard Wyckoff shared with us about a 100 years ago, we may only truly know the reason of a market move months later. 

Thus, if you are bullish about the market or banking sector, OCBC should be the leading bank to consider in view of its trading compared to the other 2 banks.

We are watching OCBC 11.60 closely, a breakout from this level will confirm potential further upside, with 1st target at S$12.00-12.20.

Identifying relatively stronger stocks is never simple, it requires experience, drawing trend lines accurately and defining the basis of strength.

In our Wyckoff trading community, we can determine the relative strength of a stock with less effort, by apply our proprietary Relative Strength indicator to objectively determine the relatively stronger stock in a clear manner.

Join us in our upcoming Wyckoff Method class and be part of our trading community and trade with our proprietary indicators.

Cheers!

*Disclaimer Applies

Popular posts from this blog

Wyckoff's Law of Effort

Law of Effort Wyckoff's Law of Effort states that on any single trading day (or week depending on time frame), huge volume (effort) push by participants should see huge price movement, resulting in a wide spread (long body). This is a basic principle of effort and result. However, as per Singtel's case study, we saw huge selling volume on 11 May, yet the price action only shows a narrow spread (small body). This divergence of effort and result in Wyckoff's Law of Effort principles, indicates possible exhaustion in selling or hidden buying. Thus, with a lack of weakness, Singtel should continue trading range bound for the coming days or weeks till further strength or weakness is observed. Swing Traders who trades range can consider positions at 3.70-3.72, with exit target 3.76-3.78.

DBS Group Holdings (D05): Upward Move Expectations

  DBS Group Holdings (D05) Upward Move Expectations Technically, price trading above 36.58, could see DBS Group retest  previous high of 38.55. Both Relative Strength and momentum indicator FFI are supportive of the move. Stop below 35.42 Disclaimers apply

Keppel DC REIT (AJBU): Expect price to trade towards S$2.00

  Keppel DC REIT (AJBU) Expect price to trade towards S$2.00 We have observed a decrease in technical supply at the S$1.80 support area during recent trading sessions. Furthermore, a softer interest rate outlook could be advantageous for the Data Centre operator.  Consequently, we anticipate the REIT to move towards our initial target of S$2.00, with the potential to reach S$2.20 if it breaks through resistance. Our stop level is set below S$1.72. Disclaimers Apply